The Tanzanian government has notified embattled Acacia Mining (LON:ACA) that it would be conducting an inspection of its North Mara mine, the gold producer鈥檚 main operation in the country and the only one of the three it owns that remains fully operational.
鈥淭he letter states that export permits for gold shipments from North Mara will be issued following completion of this inspection,鈥� Acacia .
The announced inspection of North Mara鈥檚 production makes for ominous reading for the company鈥檚 minority shareholders
The move is the latest sign of increasing government pressure on the gold miner, which faces an imminent takeover by its majority shareholder, Canada鈥檚 Barrick Gold (TSX:ABX) (NYSE:GOLD).
Acacia, Tanzania鈥檚 No.1 gold producer,聽has been embroiled in a聽, when the government banned exports of unprocessed metal and slapped the company with聽聽鈥� equal to almost three centuries worth of revenue.
After almost running out of cash, the miner had cut output by a third at Buzwag and Bulyanhulu, mothballing the latter鈥檚 underground operations to stay afloat.
It also comes just a week before a deadline for Barrick, which has a 63.9% stake in Acacia, to make a final offer for the African miner. The Toronto-based giant has said a takeover is the only way to resolve the tax dispute with the government, warning of a 鈥渃atastrophic鈥� loss of value聽if minority shareholders opposed the deal.
The announced inspection of North Mara鈥檚 production makes for ominous reading for the company鈥檚 minority shareholders, who have been resistant to the all-share offer made by Barrick in May for considering too low.
Last year the mine, Acacia鈥檚 largest, produced 336,055 ounces of gold, which the company was able to sell abroad as North Mara has not been affected by Tanzania鈥檚 2017 export ban because it produces gold dor茅 bars rather than ore concentrate.
Barrick has until July 19 to submit a new bid.